Funds are disbursed upon achievement of results and performance indicators
1. Better results
The Borrower has a strong incentive to ensure that the project delivers intended results.
The Borrower has a clear accountability and ownership for the project and its results.
3. Efficiency and cost-effectiveness
The Lender can ensure that funds are directed to projects and activities that deliver real results.
4. Capacity Development
Borrowers are incentivized to invest in building the necessary implementation capacity to ensure project completion and results.